Oil Rig Explodes In Gulf Of Mexico, Killing Two

At least two workers have died in an explosion on an oil rig in the Gulf of Mexico, and at least four others are injured. The incident happened this morning on an oil production platform owned by Houston-based Black Elk Energy. According to reports, the rig is 25 miles off the coast of Louisiana. Two other workers remain missing.

Unlike the Deepwater Horizon rig, this platform is located in shallow waters. A picture here, shows the rig billowing dark smoke, while ships spray it with water.

According to this report, a worker on the rig was cutting a pipe that he may not have realized had oil in it, when the oil ignited. The fire is said to have been extinguished.

A call and email to Black Elk's media line was not immediately returned.

According to its website, the privately held company is focused on the Gulf of Mexico, with an interest in 850 wells produced from 155 platforms in waters from 10 feet to 6,000 feet deep. The company is said to have $340 million in annual revenues.

This month, Black Elk began work on a 23-well drilling program in the Gulf of Mexico.

The chief executive of Black Elk, John Hoffman, previously worked for BP, having left in 1999. Hoffman, in this interview earlier in the said that he is an avid scuba diver and has found that some of the most amazing marine ecosystems in the world have established themselves around the steel structures of offshore oil rigs.

The rig in question is said to be located in the West Delta Block 32. Oil production has taken place on this site for at least 15 years. According to records from the Minerals Management Service (precursor to the Bureau of Ocean Energy Management), a previous owner of the platform, Seneca Resources, was investigated in 1996 and fined $85,000 for having a faulty shutdown valve on the platform.

It's unknown at this time whether those issues were resolved or when Black Elk acquired the platform.

This accident comes just one day after BP settled criminal charges with the DOJ for $4 billion. Check back for updates throughout the day.